The Chinese authorities contemplate levying retaliatory tariffs on European dairy items.
The Chinese government is taking aim at European dairy products in the Chinese market as retaliation for the EU's recently imposed tariffs on imported electric vehicles from China. On Wednesday, the Ministry of Commerce launched an "anti-subsidy investigation," which could result in the imposition of penalty taxes on certain EU products.
The EU Commission introduced the tariffs for Chinese electric vehicles on Tuesday, with potential rates reaching up to 36.3% and set to starting from the end of October for a period of five years initially. Major automakers such as BMW, VW, and Tesla, which manufacture in China, will be subject to lower duties. Beijing swiftly condemned this move and warned of an intensification of trade conflicts.
Brussels claims that China is unlawfully subsidizing its manufacturers and is concerned about potential harm to European producers, including potential plant closures or job losses. According to Commission sources, negotiations with Beijing are still ongoing to prevent the imposition of the tariffs. However, these discussions have thus far been unsuccessful.
The EU Commission announced the higher tariffs in June. At that time, Beijing had already retaliated with an "anti-subsidy investigation" on EU pork. The threat of surcharges on specific product categories is causing tension among EU nations. For instance, Spain, the largest exporter of pork, would be affected more severely than other countries.
The EU's tariffs on Chinese electric vehicles have sparked concerns within the EU, with the possibility of retaliatory measures, specifically EU car tariffs, being imposed on certain European products by China. Despite ongoing negotiations, the EU Commission has yet to find a resolution to prevent these potential tariffs.
